Financial Health Checklist
Monthly Tasks
Track Your Revenue
Record all income sources.
Compare monthly revenue to previous months.
Identify any trends or changes in your cash flow.
Monitor Your Expenses
Log all business-related expenses.
Review recurring expenses and identify potential savings.
Ensure proper documentation for all purchases (receipts, invoices).
Reconcile Bank Statements
Compare your financial records to your bank statements.
Look for any discrepancies and address them immediately.
Reconcile any outstanding checks or payments.
Review Outstanding Invoices
Check which clients still owe payments.
Send out reminder emails or invoices for overdue accounts.
Follow up with clients to ensure timely payment.
Quarterly Tasks
Review Profit and Loss Statement
Compare your revenue to expenses to determine profitability.
Assess which areas of your business are most and least profitable.
Adjust pricing or reduce costs where necessary.
Pay Estimated Taxes
Calculate your estimated taxes for the quarter.
Set aside funds for tax payments or make payments in advance.
Track any changes in tax laws that could affect your business.
Evaluate Payroll
Ensure payroll is accurate and timely.
Confirm that payroll taxes are paid and recorded correctly.
Review any employee benefits or bonuses for adjustment.
Annual Tasks
Prepare for Tax Filing
Gather all necessary tax documents (receipts, invoices, payroll records, etc.).
Review tax deductions and credits that apply to your business.
Schedule a meeting with your accountant or tax preparer.
Review Your Budget
Set goals for the next year based on current financial performance.
Review areas where you can cut expenses or increase revenue.
Adjust your budget to reflect any changes in your business plan.
Conduct a Financial Review
Meet with your accountant or financial advisor for an annual check-up.
Discuss your long-term business goals and financial strategy.
Identify opportunities for growth or cost savings.
Ongoing Tasks
Maintain an Emergency Fund
Set aside a percentage of your revenue into a business emergency fund.
Aim for 3–6 months of operating expenses in case of unexpected events.
Review Insurance Coverage
Ensure your business insurance (liability, property, etc.) is up-to-date.
Adjust coverage as your business grows or changes.
BONUS TIPS
Automate Where Possible: Use accounting software to streamline invoicing, expense tracking, and financial reporting.
Track Key Metrics: Keep an eye on cash flow, profit margins, and customer payment patterns.
Set Financial Goals: Regularly set and review financial goals to keep your business moving forward.
This Financial Health Checklist is a great tool to ensure your business remains on track throughout the year. By following these steps, you’ll have a clear picture of your business’s financial health and be able to make informed decisions to keep it thriving!